Sometime after the events of the first film and before Jumba's other experiments are scattered across Hawaii,[2] Stitch awakens from a nightmare about turning bad again and causing destruction to Earth, including hurting Lilo.

While at the hula class, Kumu announces that Lilo and her classmates will be prepared to perform at the local May Day festival, with each student required to create an original dance.

After the hula class ends, Mertle insults Lilo by telling her that she will never be like her mother, causing her to start a fight with her (which Stitch takes pictures of).

While preparing for the competition, Lilo and Stitch have a hard time coming up with ideas and Nani wants them to enjoy their family fun night.

Meanwhile, Stitch's uncontrollable destructive behavior drives a wedge between him and Lilo and threatens to ruin her chances for success at the hula competition.

Since Lilo is so concerned about winning the competition, she fails to notice Stitch's glitch, and believes his new behavior is deliberate and begins to neglect him, much to his chagrin and eventual distress.

To make matters worse, Jumba is having problems creating the fusion chamber because he doesn't have the proper alien technology to build one and must resort to using mere household objects.

While taking off, Stitch suffers his most violent and painful outburst, which causes him to lose control and crash the spaceship in the Hawaiian mountains.

She hurriedly gets him into Jumba's fusion chamber, but it's too late and Lilo watches in tears as Stitch apologizes one last time and dies.

According to Disney Animation Studios, Chase was so busy working on Lilo & Stitch: The Series that she suggested to have renowned child actress and good friend Dakota Fanning play her.

"Hawaiian Roller Coaster Ride", also from the original film, appears in two versions; a cover of the song by Jump5 (who performed the Lilo & Stitch: The Series theme song "Aloha, E Komo Mai") and a remixed version of the original performed by Mark Kealiʻi Hoʻomalu and the Kamehameha Schools Children's Chorus.

The soundtrack also includes Tia Carrere's (the voice of Nani) version of "Aloha ʻOe" as performed in the original film, but with additional backing instrumentation.

[8] On critical response aggregation website, Rotten Tomatoes, the film has a rating of 40%, and an average score of 5.5 out of 10 based on 10 reviews.

[10] ReelFilm gave a 2.5 out of 5 star rating, saying "Lilo & Stitch 2 is cute enough - there are a few genuinely funny moments here, while the voice acting is surprisingly effective - although the film does eventually wear out its welcome".

[12] She stated, "The other two Lilo & Stitch sequels were just fine,[c] but they didn’t capture the essence of what made the original special, choosing instead to focus on aliens.